tv Street Signs CNBC September 29, 2017 4:00am-5:00am EDT
hello. welcome to "street signs." i'm carolin roth these are your headlines >> spanish authorities confiscate hundreds of thousands of ballot papers, but the catalan officials call for eu intervention to protect sunday's independence referendum. >> what we've seen here today is a firm democratic and unstoppable movement that obviously is not to remain silent shares in vw and porsche hit the skids after volkswagen increases provisions
for its emissions settlements, while munich prosecutors arrest an ex-porsche executive in the emissions probe. and a new dynamic in brexit talks. there's progress in the latest round of discussions as brussels indicates that it may be open to prime minister's hopes for a transition deal. good morning it's been a busy week for the markets. today markets are range bound, at least when it comes to the stoxx 600. we are flat as a pancake i want to let you know we are heading for the best monthly gain this year in part because we've seen the weaker euro throughout september. even for the quarter, the third quarter, we're on track for a quarterly gain after we fell in the second quarter due to the euro strength. let's look at the european
markets one by one the ftse 100 up by 0.4%. the dax up by 0.2, despite weakness in the automakers the cac 40 slightly underperforming. by in large still holding on to two-month highs. when it comes to the sectors, this is the picture. autos is one of the key underperformers, off by 0.2% basic resources is outperforming, up by 0.8%. you're watching live pictures of estonia, where eu leaders are arriving for the digital summit. prem wi theresa may will be speaking about security later on. volkswagen will take a 2.5 billion euro hit for claims relating to the emission scandal. the compensationmaker in north america is more time consuming and complicated than expected, vw said this after another
official being taken in by german authorities vw one of the worst performers on the stoxx 600 this morning. back to politics, brexit diplomats on both sides of the brexit negotiations say they have made progress in brussels, but not enough to move forward to the next phase where they can address questions about atra transitional deal. despite the positive tones coming from brussels, the european parliament's lead brexit negotiator poked fun at theresa may for choosing the italian city of florence as the location for her key speech on brexit last friday take a listen. >> i have to tell you, i will tell you why prem htheresa may e speech in florence
i think because politics in the 15th century made her feel at home you know, back stabbing -- [ applause ] you know, back stabbing, betrayal, noble families fighting for power, and so on and so on. so i think that it is an environment she recognized very well >> let's get out to willem in brussels i'm not sure theresa may can laugh about these comments coming yesterday at least when it comes to the talks, there is some progress, at least that's what mr. davis is claiming. is that sort of agreed upon by the other side by michel barnier? >> yeah, david davis likes to put a positive spin on things. we have theresa may in estonia today. she will say while brit season leaving the european union, they're not leaving europe
there are lots of conditions attached to the brexit negotiations according to michel barnier the have not been met yet. let's listen to david davis. >> i believe thanks to the constructive tone and manner which both sides have conducted negotiations, we are making decisive steps forward after four rounds, when i look around the full range of issues having do with withdrawal from the eu, we've made considerable progress on issues that matter increasing certainty for citizens and businesses, providing reassurance to eu partners in regards to mutual fund financial negotiations and agreeing to some key principles arising from northern ireland and ireland. >> you hear the brexit secretary talking about considerable progre progress some have been having a bit of a laugh with her florence speech
negotiations have been slow over the last three months. really, though, all that michel barnier said that that speech achieved was to change the dynamics, make things happy and feel good. he is critical of where britain is now with the brexit divorce settlement >> an expert group had talks with technical aspects and those talks were useful. prime minister may said two things in florence first, that no member state should pay more, and no member state should receive less because of brexit. second, that commitments will be honored taken during its membership this week the uk negotiating team made clear that applying
the first principle would be limited to 2019 and 2020 and the uk explained also that it is not in position yet to identify its commitments taken during membership. for the eu, the only way to reach sufficient progress is that old commitments are taken at 28 and honored at 28. >> we have heard from david davis about considerable progress, michel barnier said there is not considerable progress unless there is sufficient progress on northern ireland, citizens rights and that divorce bill there will not be at this coming eu summit in october a decision to move forward to talk
about trade relations. >> it seems theresa may will have an easy day compared to what she's facing over the weekend. that might be a further backlash at home given that she's headed to the tory party conference i'm looking at a poll showing that only 29% support her leading the party into the next general election what sort of tone will she strike this weekend? >> we had lord maude on one of the programs yesterday he was saying one of the mornt thin important things to do is be consistent with what she said in florence and what she will say to her party in manchester one of the challenges is threading that needle through the eye. what she's challenged with when it comes to this, talking about citizens rights, the brexit bill seemingly michel barnier wants more as do other european leaders. she will have to try to down play expectations from her own
party and be possibly quite realistic about the difficulties they'll face over the next 18 months of continued negotiations. the white house is fighting back as kretice icritics attacke republicans tax overall proposal independent analysis shows the changes could reduce federal revenue by more than $5 trillio over a decade. democrats say the tax cuts are too heavily skewed towards the rich top white house economic adviser gary cohn told cnbc that interest groups were misinterpreting the proposals. >> when people come out with these numbers, they take a static view of what the tax reform means they do not incorporate the growth we think our tax plan will have an enormous amount of growth in that i think will you understand that and guests on your show will understand when we drive economic growth by bringing businesses back to america, making our business tax system competitive with the rest
of the world, we think we can drive a lot of business back to america, drive jobs back to america and make ourselves competitive. that growth is not factored into those numbers. >> skepticism remains over whether the republicans will be able to push through their tax plan house speaker paul ryan told cnbc he's confident his party will be able to make quick progress >> we spent the last four months basically working together, the senate finance committee, the house weighs and means committee and the white house making making sure we're on the same page so we're there for the takeoffs and landing unlike healthcare, where the house passed a bill and then the senate went a different direction and didn't get anything passed, we're making sure we did the hard lifting, tough work ahead of schedule, ahead of rollout, so we came up with the same framework. that's why i feel like we're wired for success. >> let's get another voice on this jim mcdonald from northern trust asset management joins me around the desk do you agree with mr. cohn do you think some interest
groups are misinterpreting this? >> it's not a surprise people are taking a partisan view on it it's important to economic growth that something gets done. our tax code is archaic. it's very complicated to get the legislation passed they have focused on several legislative initiatives since the election unsuccessfully. so you have to take the under on how long it will take to get them to pass this. the good news is the market does not have this priced in. if you look at a proxy of stocks that will benefit from tax reforms, they have materially underperformed they ticked up in the last couple of days, the good news is if they do get progress that will be well received by the market >> that means further upside for the markets. people for months and months have been talking about very stretched valuations you think we could go up more? >> i think the stretch valuation case is a bit old. the market is up this year on earnings so u.s. earnings are up 10% in the second quarter
european earnings up 19. japanese earnings up 29% that is what has supported the market appreciation. the other key underpinning is low interest rates what about the dollar? the dollar picked up steam over the last few days on the back of the rising yields. we've seen two-year yields at the highest level in nine years. can the dollar continue to run higher on this we've seen fatigue over the last 24 hours what does the dla ollar do now >> the dollar entered this year significantly overvalued it was a part of our part to move from u.s. equities to internationally developed markets and em they benefited from dollar depreciation the dollar is still overvalued relative to the euro this may be a short-term bounce. i don't think it will have persistence. >> what happens some other regions you cover? you say there's more upside for the u.s., what about europe. europe has been coming back in
the month of september -ye we're up 2.7% is it primarily a currency story here >> i don't think so. european economic momentum is stronger than in the states and stronger than in asia. so europe is leading the economic growth. you have a relatively steady political environment. we can talk about spain and germany, but most of the major developed economies around the world have political challenges. i think europe's better performance has an underpinning. >> the reflation trade would benefit primarily the u.s., also europe but not emerging markets. we've seen some of those markets come under pressure given the rising yields. is em, is that now out of fashion? >> i don't think so. i think of it differently than the reflation trade, i think more about the reigniting of growth trade
and the growth that's coming out of china that's fed into the other emerging markets, indian growth, brazil coming back, all of those things along with dollar weakness is a great recipe for em outperformance it remains a favorite asset class of ours. >> what's the playbook then heading into the fourth quarter? you like em and u.s. markets what else? >> overweight developed xus, overweight u.s. high yield bonds, looks like a reasonably attractive place corporate credit looks good we fund that from the investment grade bond portfolio >> jim, thank you very much for that >> yep e-mail the show. let us know whether you agree or disagree with jim. firstname.lastname@example.org of course you can find us on twitter, streetsignseurope@cnbc, that's the handle. tweet me at @carolincnbc. stay with us we'll have more on "street signs. back in two.
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call, visit or go to xfinitymobile.com. you're still watching live pictures of estonia where eu leaders are arriving for the italian digital summer this is jean-claude juncker answering questions in the five languages he does master we are waiting for that speech coming from theresa may. she's going to be focusing on security now, in other corporate news, shares in british construction firm carillion have fallen to the bottom of the ftse after the firm posted a 1.1 billion pound loss the company says it is considering launching a share issue in a bid to sure up its balance sheet. the share price plummeted earlier this year when it warned on contract write-downs. the stock rallied at the start of this week amid reports it
could be a takeover target carillion made no mention of the rumored deal in the earnings release. look at the stock, tanking this morning off by 3%. and sticking with the construction sector, jpmorgan has raised its price target for a range of uk home builders including taylor wimpey, band london home prices fell for the first time in eight years, but overall prices across britain did rise 2% year-on-year. let's focus back on the central banks. the ecb should take a two-pronged policy approach, that's according to ing ing to g council member he says they should slow the pace of asset purchase plans federal reserve vice chairman stanley fischer said it is important that the fed unwinds its 4$4.5 billion balane
sheet to keep its credible he said the bond program was described as temporary and now needs to be proven as such speaking at an event in london, fischer said central bankers need to be ready for anything. >> while the crisis ended soft and motivated central banks to reappraise and adapt tools, institutions and thinking, future challenges will doubtless prompt further reforms this is not a game that's going to end there will be changes all the time so i'd like to be permitted a few final words on my way out the door the watch words of the central banker should be semper vigilance i made sure that was the latin translation, always be vigilant. because history and financial markets are masters of the art of surprise as we have found out
across more than once. and never say never. because you will sometimes find yourself having do things that you never thought you would. you have been listening to some of the speeches over the last two days at the boe 20 years of independence conference are central banks still independent. we have so much political stuff going on, with brexit, for example. can they claim being fully independent? >> bank of england has been around for 300 plus years. so this 20 years of independence is a new phenomenon. initially the mandate for the central bank was maintaining price stability and having the inflation target which ended up around 2%. in '97 they were granted independence, and if you go back and look at what's happened to the investment climate, the financial climate since then, we have had many recessions
we've had a huge financial crisis and so the shift has altered from not just maintaining price stability but also thinking about things like macro regulation and financial stability. that's where the big question arises because what happened is george osbourne granted the bank of england the full regulation mandate, took it away from the treasury so that there was a small mandate for bank of england, and now people are saying perhaps some of that regulation oversight should be switched back to the treasury. the two need to work hand in hand what about the u.s., very soon a major shift when it comes to the makeup of the fomc mr. fischer speaking there, he will be leaving for personal reasons. we know yellen's term is up in january. whether that will be extended or not. that's the big question. to what extent is there fear in the market this could be impacted by politics, by what donald trump is going to do? >> i think the way it's structured, in the uk the mpc is
accountable to the chancellor. when they're outside or they miss that target, they have to write the letter to the chancellor explaining why they missed the target. in the u.s., they're accountable to the committee so they set that target if they don't get there, they have to discuss it amongst themselves. in the uk it's a bit more hard cut. therefore i think there's no risk in the u.s. of at least for now financial oversight moving or for the fed to be accountable to an outside authority there. >> thank you very much i want to take you back to estonia where the e ushg leaders have been arriving for the summit the digital summit we heard from mr. juncker, the eu president juncker saying by the end of october we will not have sufficient progress on brexit talks. so the commission president saying that we are seeing some progress as mr. davis has been
pointing out if brussen brussel probably not enough. what they're talking about is progress or sufficient progress when it comes to talking actually about the transitional deal and future trade deals between the eu and uk. now, theresa may has criticized the london mayor for the city's decision not to renew uber's operating license. the british prime minister described the ruling as disproportionate and argued it had put thousand of jobs at risk the company has apologized for past failings and is appealing against the ban. uber announced the new ceo will travel to london next week to meet the london commissioner to discuss the license. still coming up, barcelona's taxi drivers take to the streets to rally for independence. will their plans stall on sunday we'll have more on catalonia's controversial referendum after this short break
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ensuring we can give certainty and reassurance to eu citizens in the uk and uk citizens in other eu member states that's what the talks have been about. good progress has been made on that issue thank you. >> that was theresa may, the uk prime minister speaking thereupon her arrival to esto a estonia. she talked about the importance of the digital summit. she talked about strengthening cybersecurity, and then asked about this important florence speech last week, where she said she set out her program, where she set out her vision for a deep and special partnership between the eu and the uk. and she said she's glad that progress has been made this is something that the brexit minister, mr. davis has been reiterating she was asked about citizens rights and why she can't make a guarantee right here right now
she did say to that, she values the contribution of eu citizens in the uk. she wants them to stay she says good progress has been made on securing citizens rights that's what she's been talking about. she wants to reassure the eu citizens in the uk and uk citizens in the eu do continue to keep their rights those are some of the comments coming out at this point here's a quick reminder of your headlines. spanish authorities con if i case hundreds of thousands of ballot papers, but catalan officials call for eu intervention to protect sunday's independence referendum. what we've seen here today is a firm democratic and unstoppable movement that obviously is not to remain silent. shares in vw and porsche hit the skids after volkswagen increases provisions for its emissions settlements, while munich prosecutors arrest an ex-porsche executive in the emissions probe.
and a new dynamic in brexit talks. there's progress in the latest round of discussions as brussels indicates it may be open to p m prime minister may's hopes for a transition deal. just to bring you up to speed with some data points we've been getting out we got the final reading of the second quarter gdp it was revised to 1.5% year on year versus the last estimate of 1.7% that means it is a little bit weaker obviously than previously expected that's because july services were weaker than forecast. we're seeing sterling/dollar falling on the back of that. currently off by 0.4%. changing hands at 133.88 so on the quarter, the uk second quarter gdp print is confirmed at 0.3%. unchanged from the last
estimate but the year on year figure that was revised down to 1.5% we have heard in the past that it is the rise in sterling -- sorry, the plunge in the sterling that has been crimping household budgets. and all the uncertainty coming from brexit which is throwing spatter in the works of the growth trajectory for the uk we are seeing the dollar rally that we've seen unfold over the last two, three days thanks to tax reform and hawkishness is fading a bit. we're up by 0.1% i should tell you the dollar index for the week is on track for 1.1% gain. that's respectable when it comes to the european markets, we're looking flat to slightly higher today. cac 40 is the only major market
in negative territory. the xetra dax is up by 0.2%. ftse 100 up by 0.5%. u.s. futures are mixed dow jones seen off by 9 points the s&p 500 would fall by less than 1 point the nasdaq is seen up by 5 or 6 points this is as the nasdaq is on pace for the third straight positive month. the russell 2000 is on pace for the best month of the year spanish authorities released a video showing hundreds of thousands of voting papers being confiscated. the ballot papers intended for the catalan independence referendum are shown being loaded into a truck. separatists have called for people to still turn out to vote and to form cues at polling
stations the foreign affairs chief called on the eu to intervene in the vote >> we call on the european commission, the parliament in particular, to stand for values and principles which are the pillars in the treaty as i read in the beginning, article number 2. civil rights have been violated as i speak and the quality of the markets in spain are eroding day after day. one of the treaties of the european commission can no longer argue this is a domestic issue. they must defend the treaty of the european union and stand for the general interest of catalan citizens as the eu citizens they are. >> earlier we spoke to the executive board member of the spanish party, and asked about his predictions for this weekend. >> the situation is tense.
the spanish government has vowed not to allow a referendum which is illegal it's anti-constitutional there was no mandate to do that. and the catalan government has gone ahead without this, which set up the potential confrontation. most people expect everything to be peaceful, but the risk is there for sure >> luis over the years you have seen many protests, barcelona at the football stadium there's been a vocal crowd from catalonia demanding independence but this time around the catalans have managed to get it into the international agenda, perhaps because of the visit with rajoy with donald trump do you think this issue goes knee where at this point in time do you think it starts to fade after the weekend events there's never been more than 50%
of catalan voters for independence in any poll in the last election 47% voted for the party that were for independence it's a very, very vocal minority it's a very successful in terms of conversation and communication movement, but it really is and remains a minority i think while that's the case, it's unlikely to lead to any change the truth of the matter is these are intended, these referendums, all of these moves are intended to try to create a conscious nest of oppression and to put it in the agenda rather than to actually affect some change. >> let's get another voice on this with richard burton, uk representative for the psoe, the spanish social list workers party. thank you very much for giving us your time ahead of an important referendum, or is this
referendum going ahead how do you think things will play out on sunday >> nobody knows really ialan government will say that's enough the problem is they're looking for problems they want the pictures of police officers removing the voting stations, they want the picture of people -- of the police removing the ballots that's what they're looking for. they're looking for confrontati confrontation. the only way to end this is to stop the illegal procedures. >> the confrontation has been coming from both sides, and madrid last week arrested some catalan officials and performed raids. and now they're removing some voting papers. isn't that aggression enough coming from the central government. >> keep in mind the government does not arrest.
it's the judges. >> by the order of the golf. >> there's a demand from the government to keep up with the illegal situation. they're trying to break the law, do illegal actions like the referendum so they have the people that were arrested last week, they were arrested because they have public money to do something that is illegal. >> to some extent this situation will not go away even if we do or do not have a referendum on this coming sunday, how do you diffuse the escalate and de-escalate it right now? what are the steps that need to happe happen >> what will need to happen is stop with the referendum and get politicians, the politicians in spain to get together and talk all of this is lack of dialogue. the government has not done many things they've done the minimum they should do much more
what should they do? what specific steps should they take should they talk about opening up the constitution again and changing the constitution to allow the referendum to take place? is this what your party would do >> my partly will open so the people can discuss what should be designed, which roles should happen my party is in favor of a federal country, cocso catalonii a federal state of spain we will listen to any proposal, go back to the drawing board, maybe reform the constitution or have a new constitution. spanish people, the constitution is weak when it comes up with the design of the territory. because historically it was only thought or orientated for a small number of nationalities in the region in the end it was everyone
belonged to one of them. most of those today claiming for the independence, they were okay with the constitution. but they have not done minimal effort to try to amend the constitution >> so you think mr. rajoy and the party is on the wrong track. they should do more and open up the constitution why isn't everyone in theeu saying anything about this >> it's true during a long period of time the spanish government was convinced this was never going to come to the end. at some point they will stop and say okay, let's talk about it. everything, the whole thing is a lack of dialogue they both took a strong position, and their thoughts were okay, we won d't discussi i because it's illegal i think it means, okay, stop it. let's talk about it. i'm sure the cat locatalonian p
and the spanish people are capable and good with dialogue we got a constitution. if most of the people, young people, anyone below probably 60, no one has voted that constitution it's quite clear maybe people are unhappy about it let's go back to the drawing board and let's decide what we want to do the spanish constitution has the capability to be amended it has been amended at least twice. why not once again let's discuss how to redesign the country. >> even someone like donald trump weighed into the conflict saying unity is better than secession, but the eu has been mum maybe because they, too, are afraid of secessionist talk within their own countries people like merkel and theresa may have bigger things to worry about than the referendum in spain at this point in time. do you worry about the impact that this continued protracted
conflict will have on the spanish economy? >> will have a strong impact all the markets do not like uncertain scenarios. they like to know what will happen next. as of now nobody knows what will happen nobody knows what will happen sunday nobody knows what will happen after sunday i'm sure the markets will realize as soon as the spanish government stops talking with the catalonian government, everything will get back to normal they will not agree to everything on the first day. brexit will take a long time so this could take a long time as well. >> thank you very much for your insights richard burton for an in-depth look at the catalan referendum, head to cnbc for a full report. the recovery effort in
puerto rico in the wake of hurricane maria has been slow. the trump administration waived shipping restrictions to it speed up recovery. >> reporter: in san juan, rows of shipping containers packed with relief supplies just sit. puerto ricans are frustrated >> our response to an incident like this is complex it's difficult it is not nearly as fast as any of us want >> reporter: the white house is team prayerly wai temporari temporarily waived the jones act, a nearly century old law that requires that only american ships carry supplies from u.s. ports. >> the supply chain from the domestic carrier hasn't been the problem. we deliver the problem has been the distribution on the island >> reporter: with little phone service in puerto rico, communication is crippled. private truckers aren't showing up for deliveries. the former general in charge of coordinating military relief
efforts after hurricane katrina is blasting the trump administration. >> the relief effort is under control. it is proceeding very well considering the devastation that took place. >> reporter: outside san juan some villages were cut off with debris helicopters bring food and water. residents who survived the storm now struggling to survive. d nbc news e-mail the show. the address is email@example.com you can also find us on twitter, streetsignseurope@cnbc and tweet me @carolincnbc. coming up on the show, ikea turns the screws the swedish retailer is assembling a deal to buy task rabbit, an online platform where users can hire people to do jobs around the house more on that after this short break. ♪ can i kick it?
quick look at european markets. we're still trading close to two-month highs. this week has been good for markets. so he has the month. the stoxx 600 is heading for the best monthly gain so far this year up by 2.7% this month. this is because we've seen a weaker euro versus the dollar over the course of september the xetra dax this morning is up by 0.2% despite bad news from automakers i want to draw your attention to the ftse 100, close to session highs, on the back of a downgrade on the year-on-year figure for the second quarter growth for the uk. that's put pressure on the pound sterling and that helps the ftse volkswagen will take a further 2.5 billion euro hit for claims relating to the diesel
emissions scandal. they said the plan is more complex and time consuming than expected this after a fresh arrest in the case with the former head of the vw's engine division being taken in by german authorities. diplomats on both sides of the latest brexit negotiations say they have made progress in brussels, but not enough to move forward to the next phase where they can address questions about a transition deal and long-term trade pact the talks come as prime minister theresa may visits estonia for the eu digital summit where she has reiterated britain's commitment to europe's security. the prime minister also commented on the worries over eu citizens rights in a post brexit britain. >> we value the contribution that eu citizens have made in the uk, they made their life in the uk i value their contribution i want them to stay. we've been negotiations on those rights i want uk citizens in other european member states to have their rights guaranteed as well.
in my florence speech i set out clearly how we could guarantee the rights of those eu citizens would be guaranteed in the uk. that's part of the negotiations that we've had very good progress has been made that was clear from the statements that both david davis and michel barnier made yesterday. dwtwitter says it removedpi linked to russia, but one lawmaker says twitter is not doing enough mark warner a democrat on the intelligence committee said he was not impressed. >> presentation that the twitter team made to the senate intel staff today was deeply disappointing. their response was frankly inadequate on almost every level. ikea is buying task rabbit
the online platform where users can hire people to do small household tasks or offer up their own services i would be lying if i said i never used task rabbit terms of the deal were not disclosed. rovio priced its ipo at the top of its initial range at 11.50 euros per share it will have a market value of 900 million euros, less than what was expected from the company years ago. the finnish mobile gamesmaker said it will use the proceeds to invest in growth. and some are investing heavily in artificial intelligence with afshi becoming the next big buzzword. phil levin is founder of all turtles, and arjun kharpal also
joins me your new venture is sort of a start-up studio. you don't want to just finance the companies but be on the creative side. am i getting this right? >> that's right. we're an ai start-up studio. we think ai is the answer to many important problems going on now. we think we have a method of making important ai products, which is more efficient than the silicon valley style vc track. >> would you say vcs are not good enough to foster innovation >> i think the vc industry works well in a narrow place and i think it's just not broad enough there's many amazingly talented product people, who don't have access to this pathway, because they happen not to live in the right place, not have the right background, and we want to make sure that all of the most important product founders, whether in san francisco or tokyo or paris or anywhere have
an opportunity to make important products not just to -- don't just provide them with money, we work on the products with them. >> i've been impressed with some iu developments coming out, some large firms. it seems like every company wants to attach ai to their name there's a lot of hype in the area how are you trying to cut through the noise and find those companies? what are the big areas and sectors that you think ai can disrupt and find value to? >> there's a lot of buzz around ai now like there was buzz around mobile when we started in 2007, 2008 everyone was just starting to talk about mobile back then. everyone was already starting to slightly roll their eyes at it, because we knew within three years they wouldn't be able to say mobile anymore, because it would have integrated itself into the fabric of everything. in three, four years we won't be able to call ourselves an ai company. ai will be in every product. over the next three years is when these product also integrate themselves into
things we want to create these things without the inefficiencies and going through the difficult and unimportant step of companymaking before they get to make a product >> there's been a lot of debate around the impact of artificial intelligence within the community. where do you stand on that is there too much hyperbole around the impact ai can have on jobs and broader society >> there's a lot of hyperbole and people negative about it, because it's easier to be negative it's easier to see the risks and sound smarter when you see the down side it takes more imagination to see the upside this is what people were saying about fire when it first came out. i think ai will be a positive force in the world it's going to solve many of the problems that exist today that exist because humans are just overwhelmed with how much information they can process
and of course there's risks and down sides, but it's our responsibility as the technical people making it to figure out the positive use cases and make practical products >> when it comes to the companies actually capitalizing on this trend, is bigger always better because they have more resources? we're talking about the amazons, the googles of the world, the start-up communities, can they make a difference here >> absolutely. i think the idea of a company is increasingly archaic idea. companies are not what they used to be. the average tenure of an employee at amazon, google, two years. the average person working at going hall only been there a year and a half. the big companies are not really companies anymore, they're really meta-companies. talented young people come n work on a project, leave, start a startup, sell it go somewhere else, leave, make another startup, and get acquired by somebody else. this is the cycle that fuels
innovation there's no real advantage to the big companies. most of the innovative products will be made by small, innovative teams >> we'll see phil, thank you very much for that >> thank you phil libin founder of all turtdalturtd turtles. is there life on mars? elon musk has laid out the details for his thought obsers a permanent presence on mars a look at futures. last time they were mixed. still are. it is the final day of the month and the quarter. that's it for today's show have a great weekend happy anniversary dinnedarlin'
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the record rally rolls on as we wrap up the third quarter what's in store for q4 we break out the year-end playbook. frankly inadequate that's what one top lawmaker is calling the twitter response to the russia probe. and remember this? [ bleep ] you! [ bleep ] kathy! you're not our [ bleep ] neighbor >> the kb homes ceo addressing his kathy griffin meltdown on the company's earnings call. we'll tell you what he said. it's